The Advantages of Restaurant Franchising in 2026

We talked a bit before we started about LinkedIn, and I have actually got a post teed up to follow this next week about what the playbook is likepoint by pointfor growing a business. To me, among the crucial things, and I feel really lucky, is that both brand names I've been involved with are special.

And there's nothing precisely like Chop Store in regards to what we're making with a large, diverse menu. A lot of brands today are really singularly focused in terms of what they're using from a food product. I seem like we started at a benefit with both brands by having something distinct that filled a niche nobody else was doing.

A lot of it starts with the brand. Does your brand have something special that no one else is doing?

The 2nd thingI came from a finance background, so a lot of my learnings are more finance and data-driven versus a lot of early start-up restaurateurs who are creative types. They enjoy the food, they developed the menu, they built the brand name.

They do not know their breakeven sales. They don't understand how margin improves as sales boost. They do not comprehend cash-on-cash returns. I've seen many companies where the numbers just don't work. And yet people say: let's open 10 more. And I'll say: why? It doesn't earn money. Stop. You need to discover an idea that is special.

Profitable Hospitality Investments Coming in 2026

If you don't have those two things, you shouldn't be building stores. Because as I hear your description, you have actually highlighted 3 things: execution, brand name differentiation, and financial viability.

Second, you need an engaging brand or distinct concept that resonates with clients. And another key lesson is about entering brand-new markets.

When we expanded to Dallas, I anticipated brand-new shops to do 5070% of Phoenix sales in the first year. Too many operators presume brand-new markets will open at complete volume day one.

Otherwise, they get rose-colored glasses about success in the home market and assume it will equate quickly. You pointed out expecting 5070% volumes. That's sobering. I've even seen cases where it's just 2530% at launch. It underscores how vital capital structure is. Yes. Most small growth principles like ours rely on equity, not debt.

Freddy's Frozen Custard & Steakburgers

Corporate Updates: New Developments in 2026

You need equity sponsors who think in the vision and the team. That's pricey, however it creates important mass, constructs awareness, and justifies above-store leadership.

At Chop Shop, we deliberately developed strong bases in Phoenix and Dallas. That gave us the success to stand up to sluggish starts in Houston and Atlanta. And we were lucky that Dallasour 2nd marketwas likewise where our group lived. Having the entire team in-market to support shops, hire, and make sure culture was huge.

People frequently underestimate how critical group is to scaling. How have you approached building and scaling your group? This is something I'm really happy with. Our team took all the things we hated from past jobsfeeling underappreciated, underpaid, growth-stifledand constructed the opposite culture here. We emphasize development frame of mind and career pathing.

The Advantages of Restaurant Franchising in 2026

Otherwise, they get rose-colored glasses about success in the home market and presume it will translate rapidly. You mentioned expecting 5070% volumes. That's sobering. I've even seen cases where it's simply 2530% at launch. It highlights how vital capital structure is. Yes. Most little growth concepts like ours rely on equity, not debt.

You need equity sponsors who think in the vision and the group. That's pricey, but it produces important mass, develops awareness, and justifies above-store leadership.

At Chop Shop, we deliberately built strong bases in Phoenix and Dallas initially. That gave us the success to stand up to sluggish starts in Houston and Atlanta. And we were lucky that Dallasour second marketwas also where our team lived. Having the entire team in-market to support stores, hire, and guarantee culture was huge.

Freddy's Frozen Custard & Steakburgers

Individuals frequently undervalue how important group is to scaling. How have you approached structure and scaling your group? This is something I'm really happy with. Our group took all the important things we disliked from past jobsfeeling underappreciated, underpaid, growth-stifledand constructed the opposite culture here. We emphasize development mindset and career pathing.

Otherwise, they get rose-colored glasses about success in the home market and assume it will translate rapidly. You discussed expecting 5070% volumes. I've even seen cases where it's just 2530% at launch.

Freddy's Frozen Custard & Steakburgers

Key Tips for Expanding Hospitality Footprints

You require equity sponsors who think in the vision and the team. That's pricey, however it produces crucial mass, builds awareness, and justifies above-store leadership.

At Chop Shop, we deliberately constructed strong bases in Phoenix and Dallas first. That provided us the success to withstand slow starts in Houston and Atlanta. And we were fortunate that Dallasour second marketwas likewise where our team lived. Having the entire group in-market to support stores, hire, and ensure culture was big.

People frequently underestimate how vital group is to scaling. Our team took all the things we hated from past jobsfeeling underappreciated, underpaid, growth-stifledand constructed the opposite culture here.